The Banks Association of Turkey was founded in 1958. It is a professional organization, which is a legal entity with the status of a public institution, established pursuant to Article 79 of the Banks Act. The head office of the Association is in Istanbul.
The purpose of the Association is to preserve the rights and benefits of banks, to carry on studies for the growth of the banking sector, for its robust functioning and the development of banking profession, strengthening of competition power, to take the decisions/ensure that they are taken to prevent unfair competition, to implement and demand implementation of these decisions, in line with the principles of open market economics and perfect competition and the regulations, principles and rules of banking.
All deposit banks, development and investment banks operating in Turkey are obliged to become members of this Association at most a month after they get their permit of operation, and to comply with the provisions of this Statute, and to implement the decisions taken by the authorized bodies of the Association.
Duties of the Association
- To form policies and to take decisions for the development of the Turkish Banking system and the profession,
- To determine the professional principles and standards to be observed by the personnel of the member banks, by obtaining favorable opinion of the Agency,
- To determine the professional principles, thus ensuring that the members function in line with the requirements of the economy, with the dignity and discipline required by the Association and the profession,
- To determine the ethical principles by obtaining favorable opinion of the Board,
- To follow up implementation of the decisions taken pursuant to the legislation and of the measures which the Authority requires to be taken,
- To prevent unfair competition among its members and to take and apply all kinds of measures to protect the competitive environment,
- To determine the principles and procedures related with the form and contents of the contracts foreseen in the provisions related with customer rights as well as the procedures related with implementation of standard contracts, by obtaining favorable opinion of the Agency,
- To represent and promote banking at home and abroad and to carry out activities to inform the public in this matter,
- To monitor the domestic and overseas developments in the economy, in the financial sector and in the banking system and to forward the information it will gather to its members and to those concerned,
- To take decisions that will strengthen professional solidarity in interbank relations,
- To give consultative opinions of general nature to governmental agencies and organizations in matters related with banks and banking,
- To carry out the activities required to encourage national savings and to submit proposals to competent authorities on this matter,
- To set up a board of arbitrators under the principles and procedures to be prepared by the Association and be approved by the Board, in order to ensure that the disputes between the members and their individual customers are considered and resolved,
- To ensure cooperation on common projects among the banks by cooperating with the Agency,
- To gather bank statistics that are not of confidential nature and announce the same to the public,
- To follow up the legislation on banking and to announce the arrangements in this field to the member banks,
- Without prejudice to the provisions of relevant legislation, to take resolutions for the member banks in connection with fixing of the maximum rates and limits of the deposit interests the banks will pay to their depositors and the credit interest rates, commissions and fees they will apply for the credits they have opened and for the other transactions related therewith and the commissions, fees and expenses they will collect against the services they offer to their customers,
- To determine the principles and conditions to be observed by the members in their announcements and advertisements, by their types, forms, nature and quantities, by obtaining favorable opinion of the Agency,
- To follow up implementation of the decisions and measures taken by the association and to take decisions, imposing fines on those members who fail to comply with the same in time and in full,
- To arrange seminars, symposiums, conferences and similar training programs in matters related with banking,
- To file lawsuits on the basis of the resolution of the Board of Directors in matters concerning common interest of the members,
- To take the measures which the Authority requires to be taken,
- To carry out the other duties entrusted to it under the law and relevant legislation.
Organs of the Association consist of the General Assembly, the Board of Directors, and the Auditors. The decision making body is the General Assembly and the executive body is the Board of Directors. There also exists the Secretariat General and the Advisory Board in the Association.
The General Assembly consists of the representatives of member banks. The General Assembly performs the following duties;
- To examine and approve the budget and report of the Board of Directors and the Auditors regarding the yearly activities and accounts of the Association.
- To elect the members of the Board of Directors separately on the basis of the bank groups.
- To elect the Auditors.
- To discuss and take necessary decisions on the suggestions and requests of the Board of the Directors regarding the duties and purposes of the Association or regarding such suggestions and requests to be made by the members to the Board of Directors as presented to General Assembly by March of each year and make decisions as to the new activity year.
- To make suggestions to the Banking Regulation and Supervision Agency, concerning any amendments deemed necessary for the Statute.
Board of Directors
The members of the Board of Directors are elected by the General Assembly. The banks are grouped as the following. Each group elects members by balloting among themselves in the General Assembly. Considering deposit banks according to the year-end balance sheets; the Board consists of;
8 members from the group consisting of ten banks with the highest total assets in the sector,
3 members from the group consisting of eight banks following in rank the ten banks constituting the above group in terms of total assets,
1 member from the group of banks ranking after the banks constituting the aforementioned two groups in terms of total assets.
1 member from the development and investment banks.
The members of the Board of Directors are elected for a term of two years. Members having completed their terms of office may be re-elected. The duties of the Board are as follows;
- To perform the duties stated in this Statute,
- To decide on any delegation of authority concerning signing of documents which put the Association under any responsibility,
- To elect the Chairman and Acting Chairman of the Board of Directors,
- To appoint the Secretary General and to determine his remuneration,
- To determine the principles and procedures with a view to ensuring that the disputes between the members and their customers are considered and resolved, and to form a board of arbitrators under the said principles and procedures approved by the Agency,
- To convene the General Assembly for extraordinary meetings, to determine the agenda, place, date and time of the ordinary and extraordinary General Assembly meetings,
- To approve the internal regulations of the Association,
- To determine the remuneration policy of the Association, to determine the units to be set up or to be closed within the Association, to decide on the acquisition or disposal of real property for the achievement of the objectives of the Association,
- To decide on disciplinary matters.
Banks are represented in the Association by either the Chairman of the Board of Directors, the Managing Director, the General Manager or by the Acting General Manager.
Chairman of the Board of Directors
The Chairman of the Board of Directors represents the Association and is responsible for the implementation of the resolutions of the General Assembly and the Board of Directors.
The Chairman of the Board of Directors is elected by the Board of Directors among the general managers of the banks represented in the Board of Directors. The term of office of the Chairman of the Board of Directors is limited with the term of office of the Board of Directors. The Board of Directors elects the Acting Chairman among the general managers of the banks represented in the Board of Directors, to serve for a period of two years.
The General Assembly elects 3 banks as auditors for a term of two years. Auditors present the results of the activities of the Association in a joint report after examining all accounts and transitions prior to the anuual meetings of the General Assembly.
BAT’s financial accounts and procedures are also audited by an independent external auditing firm.
The Advisory Board is the consultative unit of the Board of Directors. The Advisory Board is composed of the members elected by the Board of Directors of the banks represented in the Board of Directors among the candidates nominated by the majority shareholders of those banks and notified to the Chairman of the Board of Directors.
The term of office of the Advisory Board is limited with the term of office of the Board of Directors. The decisions of the Advisory Board are advisory in nature and are notified to the Board of Directors.
Secretary General is appointed by the Board of Directors. The duties and powers of the Secretary General are as follows;
- To ensure that the members are notified about the resolutions of the General Assembly and the Board of Directors and to execute these resolutions,
- To fulfill the duties charged by the Board of Directors,
- To prepare the reports on the personnel, organizational structure, remuneration policy, budget, regulations and activities of the Association and to submit them to the Board of Directors for examination and approval,
- To execute the accounting, count books and other books and all correspondences of the Association,
- To represent the Association on behalf of the Board of Directors vis a vis governmental bodies, courts and third parties,
- To prepare the opinion and information to be given by the Association in compliance with the provisions of the Banking Law and to submit these to the Board of Directors for approval.
Banking and Research
- Collects and composes opinions of the banks on rules and regulations as well as on other technical issues in banking and finance.
- Promotes cooperation in collective projects between banks
- Follows banking legislation and keep its members update on these regulations
- Makes research in the field of banking, finance and economy
- Follows international developments related to banking and finance
- Builds up relations with local and international authorities or institutions (IMF, World Bank, IIF etc.) and looks for collaboration and exchange of knowledge and experiences.
- Explores international best practices in banking and establishes similar standards for the banking sector in Turkey.
- Library; The library is established to promote banking profession in Turkey. It provides resources to bankers as well as researchers and students studying in the field of banking, economy and finance.
Training and Promotion
- Offers regular courses mainly on technical banking and finance in BAT Training Center. The courses are offered all through the year in three semesters.
- Organises conferences on the current topics of the banking sector. Conferences are held to give a visionary perspective and to keep up bankers updated on global economy and finance and foreign country experiences.
- Offers on –line training to banks and the public (www.tbb-bes.org.tr)
- Organises events to increase the reputation of banking sector both at national and international arena.
- Coordinates corporate communication strategies for enhancing the reputation of banking sector in Turkey.
- Liaises with the press and media both in the sense of informing new developments and also offers them training programs to increase their technical knowledge on banking issues.
- Carries out social responsibility projects
Data Processing, Statistics and Technology
- Develops and carries out projects on electronic systems (EFT, SWIFT, IBAN etc.) in the banking sector
- Follows international developments in banking sector on internet banking, electronic banking, payment systems and updates banks on currents developments
- Gathers statistics regularly from member banks and produce consolidated reports on the banking sector. (Banks in Turkey, Quarterly reports etc.)
- Hosts, manages and provides technical support services to BAT’s local IT system and private communication system with its members
Financial and Administrative Affairs
- Carries out all administrative services and recruitment of the staff
- Runs the BAT’s budget
- Co-ordinates, follows, archives intensive correspondence between BAT , its members and related parties
- Manages the financial accounts of the Electronic Fund Transfer (EFT) System in Turkey.